* Total Nov sales up 7 pct vs forecast 6 pct
* Sept-Nov sales 32.5 bln SEK, matching forecast
* Annual revenue up 10 pct vs forecast 16 pct for Inditex
(Adds background, analysts, shares)
By Anna Ringstrom and Veronica Ek
STOCKHOLM, Dec 17 Revenue at world number two
fashion retailer Hennes & Mauritz rose 10 percent this
year, lagging forecast growth at larger rival Inditex
which is less exposed to the downturn in Europe.
Sweden's H&M has the bulk of its business in the region,
where a sovereign debt crisis and government austerity measures
have dampened demand.
Inditex, which owns Zara and other chains, has a larger
share of sales than H&M in faster-growing emerging markets and
is less exposed to cost inflation in Asia.
H&M on Monday posted a smaller-than-expected drop in sales
at stores open a year or more in November, the end of its
Fourth-quarter figures published at the same time would take
revenue for the whole year to 120.8 billion Swedish crowns ($18
billion), according to Reuters calculations, a 10 percent rise
That's less than the 16 percent rise Inditex is expected to
report in its current financial year to the end of January,
according to Thomson Reuters Starmine data.
Starmine forecasts put Inditex's total revenue at 16 billion
euros ($21 billion).
Citi analyst Richard Evans said a weak euro and likely
product investments would probably limit H&M's earnings growth
in 2013 to mid-single digits, repeating a neutral stance on
Evans said its figures on Monday did not alter his
expectations for full-year 2013 sales of 132.7 billion crowns
and pretax profit of 24.5 billion. The Starmine median forecast
is for revenue of 133 billion crowns.
H&M said local currency sales at stores open a year or more
shrank 1 percent in November, less than a Reuters poll forecast
for a 3 percent drop and were up 1 percent in
the year as a whole.
The sales drop was the second one in a row after a 5 percent
dip in October.
Total sales in November including new stores were up 7
percent from a year earlier in local currencies, just above
forecast, for a total year rise of 11 percent.
"Sales are marginally better than we expected but probably
at a cost to margin," said Credit Suisse analyst Simon Irwin,
adding that H&M had probably been cutting prices in promotions
to get rid of stock in November.
He stuck to forecasts for full-year 2013 like-for-like local
currency sales growth of 2 percent and total sales growth in
crowns of 10.4 percent.
Turnover in the September-November quarter, which H&M
published ahead of the full-year earnings report on Jan.30, rose
5 percent from a year earlier to 32.5 billion crowns, matching
H&M's shares were up 2.8 percent at 1148 GMT, taking a
year-to-date rise to 0.8 percent while the STOXX Europe 600
retail index is up 9 percent.
Inditex, which H&M trails by value and turnover as well as
by the number of markets and stores, has soared 66 percent so
far this year.
($1 = 6.6883 Swedish crowns)
($1 = 0.7628 euros)
(Reporting by Anna Ringstrom; Editing by Erica Billingham)